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RCED-89-132 Water Resources: Corps of Engineers' Inspections Of : a United States General Accounting Office Report to the Honorable ‘GAO Robert C. Byrd, U.S. Senate I . ,_ a!&1;+-,:,; ; .m. .. : United States GAO General Accounting Office Cincinnati Regional Office Ciuciuuati Commerce Center 600 Vine Street, Suite 2100 Ciuciunati, OH 45202-2430 B-235390 August 7, 1989 The Honorable Robert C. Byrd United States Senate Dear Senator Byrd: This report responds to your request that we review the U.S. Army Corps of Engineers’ inspections of the work by Metric Constructors, Inc., a contractor for a flood protection project in West Williamson, West Vir- ginia. In your March 23, 1988, letter, you asked us to identify the types of inspection activities required by the Corps and to determine whether those activities were carried out in accordance with Corps procedures. During the course of our work, we briefed your office on our prelimi- nary results. Because we had not found anything at that time which would indicate that the Corps was lax in its inspection activities, your office agreed that additional work on this project was not necessary. Your office, however, requested that we prepare a written report describing the information we presented dt the briefing. The results of our review are summarized below and discussed in more detail in the appendixes. The Corps of Engineers’ contract with Metric Constructors, Inc., pro- Background vides for Metric to build a levee with a flood wall on the Tug Fork of the Big Sandy River in West Williamson, West Virginia. This construction work, which will cost about $25 million, is part of a long-term flood pro- tection project that covers a large area in western West Virginia, south- western Virginia, and eastern Kentucky. The overall project involves flood control activities in the Big Sandy and Upper Cumberland River basins which will probably cost about $740 million. (See app. II.) The basic policies for administering government construction contracts are contained in the Federal Acquisition Regulation. These policies require contractors and federal agencies to share responsibility for con- tinually inspecting construction work to ensure that it is of high quality and fully conforms to contract requirements. The Corps has included the federal inspection policies in its regulations. Page 1 GAO/RCED-89.132 Corps Inspections of West Wiison Flood Wall B235390 Corps regulations require it to (1) ensure that contractors develop plans, Results in Brief establish organizations, and commit resources to independently inspect construction activities and (2) systematically oversee contractors’ tests and inspections and perform independent inspections to confirm that the materials and workmanship meet all contract and project require- ments. These inspection requirements, which are further explained in appendix III, were included in the Corps’ contract with Metric, and in Corps procedures for overseeing Metric’s work, respectively. On the basis of our interviews of Corps and contractor officials and our limited review of selected inspection records and other documentation, we believe that the Corps took reasonable actions to ensure that the inspection activities for the construction work under the Metric contract were carried out in accordance with Corps requirements. For example: l The contractor developed a quality control plan, approved by the Corps, which established an independent construction inspection activity at the work site. The chief inspector and his staff inspectors reported their inspection activities to the Corps on daily quality control reports as pro- vided for in the plan. l The Corps assigned inspectors to the work site who observed contract work on a daily basis, conducted tests and inspections, and prepared daily quality assurance reports. In addition, Corps management officials made periodic site visits to review construction progress and to oversee the work of Corps inspectors. (See app. IV.) We conducted our review from April to December 1988, in accordance with generally accepted government auditing standards. Details of our objectives, scope, and methodology are presented in appendix I. The Assistant Secretary of the Army (Civil Works), on behalf of the Depart ment of Defense, concurred with our report and offered no further com- ments (See app. V.) Page 2 GAO/RCED-89-132 Corps Inspections of West Williamson Flood Wall R-235390 - As arranged with your office, unless you publicly announce its contents earlier, we plan no further distribution of this report until 30 days from the date of this letter. At that time, we will send copies to the Secretary of Defense, the Secretary of the Army, and other interested parties. Major contributors to this report are listed in appendix VI. Sincerely yours, C. William Moore Regional Manager Page 3 GAO/RCED-89-132 Corps Inspections of West Wiiamson Flood Wall Contents Letter Appendix I 6 Objectives, Scope, and Methodology .- Appendix II 9 Background on the History of Flooding in the Three-State Area 9 Impact of Floods in the Tug Fork Valley 11 Corps of Engineers’ The West Williamson Flood Control Project 12 West Williamson Flood Wall Project Appendix III 14 Corps Regulations Contractor Responsibilities 14 Require Both Corps Responsibility 15 Contractor and Corps Inspections Appendix IV 17 Inspection Activities Conclusion 19 Were Undertaken in Accordance With Corps Requirements Appendix V 20 Comments From the Department of the AmY Appendix VI 21 Major Contributors to Resources, Community, and Economic Development 21 Division, Washington, D.C. This Report Cincinnati Regional Office 21 Page 4 GAO/RCED-39-132 Corps Inspections of West Williamson Flood Wall Figures Figure II. 1: Levisa Fork and Tug Fork of the Big Sandy 10 River Figure 11.2:West Williamson Concrete Wall Under 12 Construction Figure 11.3:Nearly Completed Floodwall Atop the Levee 13 Abbreviations FAN Federal Acquisition Regulation Paye 5 GAO/KCED-89-132 Corps Inspections of West Williamson Flood Wd Appendix I Objectives, Scope, and Methodology Senator Robert C. Byrd’s March 23, 1988, letter discussed information about construction activities at a Corps of Engineers flood protection project in West Williamson, West Virginia. Senator Byrd was particu- larly concerned because a former employee of Metric Constructors, Inc., had alleged that Metric encouraged him to overlook discrepancies in sur- vey records and to disregard the improper installation of a drainage system. We agreed with Senator Byrd’s office to review the Corps of Engineers’ oversight of Metric’s construction activities rather than the specific alle- gations of the former Metric employee. More specifically, we agreed to (1) identify the inspection procedures the Corps has in place to ensure quality construction at the West Williamson flood protection project and (2) determine whether the inspection activities were carried out in accordance with these procedures. During the course of our work, we briefed Senator Byrd’s office on our preliminary results, which were based primarily on numerous inter- views with Corps and contractor officials plus a limited review of sev- eral construction inspection reports and other related documentation. Because we had not found anything at that time indicating that the con- tractor or the Corps was lax in its inspection activities, Senator Byrd’s office agreed that additional work on this project was not necessary. Nevertheless, Senator Byrd’s office requested that we prepare a report describing the information we presented at the briefing. This report responds to that request. To obtain a general understanding of the flood control project in West Williamson and to specifically address the two review objectives, we reviewed various pro.ject plans, financial records, and contract docu- ments associated with the West Williamson flood control project. These reviews gave us a good understanding of the background, characteris- tics, and historical justification, not only for the West Williamson pro- ject, but also for other flood protection projects in the Big Sandy and Upper Cumberland River basins. To identify and understand Corps construction inspection procedures, we reviewed (1) the Federal Acquisition Regulation which identifies governmentwide construction inspection requirements and (2) specific Corps regulations and publications which provide further implementing guidance for overseeing and inspecting the quality of construction activ- ities. We also obtained clarification on these requirements by discussing them with Corps management and inspection personnel. This provided Page 6 GAOiRCED-89.132 Corps Inspections of West Williamson Flood Wdl Appendix 1 Objectives, Scope, and Methodology us with an additional perspective on the personnel’s knowledge of inspection requirements. To determine if construction inspection was being carried out in accord- ance with Corps procedures, we did a number of things. First, we identi- fied specific inspection activities required by Corps procedures and interviewed contractor and Corps officials to determine if the inspection procedures had been carried out. We then obtained and reviewed selected documents to assess the information told to us during the inter- views. Finally, we attempted to corroborate information by talking with more that one person knowledgeable about the inspection activities. For example, to determine if Corps inspectors maintained a daily presence at the construction site and performed periodic inspections and tests, we talked to the inspectors as well as to contractor personnel who dealt
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